All Forum Posts by: Jerome Ramirez Guerrero

@Jerome Ramirez Guerrero, depreciation is the deduction on your taxes each year for your property's theoretical loss in value. So, it is a tax savings.

However, this reduces your tax basis each year.

For example if you bought a property for $100k and depreciated $5k on your taxes over a couple years and then sold the property for $200k, your profit aka capital gain would be $105k because your tax basis would have been reduced from $100k to $95k based on the depreciation.

You can use a 1031 exchange to DEFER paying tax on that capital gain, but it is just kicking the can down the road, if you ever sell you will have to recapture all the capital gain. My intention is to do 1031 exchanges and never sell my investments. My heirs will not have to pay taxes on my gains!

Thank you @Kevin Sobilo and @Dave Foster for your valuable information!

2 Votes

Seattle, Washington

Can depreciation taxes be avoided by performing a 1031 exchange?

Thank you,

1 Vote

Seattle, Washington

@Jay Hurst I am looking to use it for the down payment.

Thank you,

0 Votes

Seattle, Washington

Hi, Real estate Investors.

To finance my first investment I am looking to use the HELOC program.

Have any of you used this process ? and what was your experience and outcome using it for your investment (s)?

Thank you,

0 Votes

Seattle, Washington

Hello everyone,

For those of you already in the game and receiving monthly Payment(s) from your property(ies) What is the tax percentage on that cash flow?

Thank you!

0 Votes

Seattle, Washington

All Forum Posts by: Jerome Ramirez Guerrero

Jerome Ramirez Guerrero has started 4 posts and replied 6 times.

Post: MCEBA & MRBA calculation result

Post: Depreciation taxed avoidance ?

Post: Depreciation taxed avoidance ?

Post: Using HELOC Financing

Post: Using HELOC Financing

Post: Is your monthly rent income tax at the federal level ?